Saudi Fund Invests in EV Startup, Lucid Motors

Lucid Motors Inc., a California-based electric vehicle startup, says it has secured more than $1 billion from Saudi Arabia’s Public Investment Fund (PIF). A Reuters report last month indicated such a deal was being considered.

The funding will be used to help Lucid to complete development and launch its first model, the Air EV, in 2020. The company plans to manufacture the luxury sedan at a factory it’s constructing in Casa Grande, Ariz.

The five-passenger Air is expected to have a 400-hp electric motor and be able to travel 240 miles per charge. A fully loaded Air Launch edition will feature all-wheel drive, a 1,000-hp powertrain and a range of 315 miles.

Formed in 2007 by ex-Tesla and Oracle executives, Lucid started as an EV battery maker known as Atievea. The company changed its named to Lucid in 2016 and received backing from Chinese investors, including tech entrepreneur Jia Yueting and state-owned carmaker BAIC Motor Co.

PIF has made several large investments in recent years as Saudi Arabia moves to diversify its economy and lower its reliance on the petroleum market. Last month the fund bought a nearly 5% stake in Tesla Inc. Other recent deals include a $3.5 billion stake in Uber Technologies and agreement to invest in a giant technology fund led by Japan’s SoftBank Group.